AnaptysBio, Inc. (NASDAQ:ANAB) is a biotechnology company focused on developing antibody therapeutics for inflammation and immuno-oncology. The company operates in a competitive landscape alongside peers like Deciphera Pharmaceuticals, Crinetics Pharmaceuticals, Rhythm Pharmaceuticals, Kura Oncology, and CytomX Therapeutics. These companies are all engaged in the development of innovative treatments, making the efficient use of capital crucial for their success.
AnaptysBio’s Return on Invested Capital (ROIC) is -26.21%, while its Weighted Average Cost of Capital (WACC) is 4.92%. This results in a ROIC to WACC ratio of -5.32, indicating that the company is not generating sufficient returns on its invested capital compared to its cost of capital. This negative ratio suggests inefficiencies in capital utilization, which can be concerning for investors looking for growth potential.
In comparison, Deciphera Pharmaceuticals has an even lower ROIC of -60.55% and a WACC of 5.15%, resulting in a ROIC to WACC ratio of -11.75. This indicates that Deciphera is also struggling to generate returns above its cost of capital, similar to AnaptysBio. Crinetics Pharmaceuticals, with a ROIC of -24.56% and a WACC of 6.69%, has a slightly better ROIC to WACC ratio of -3.67, but still faces challenges in capital efficiency.
Rhythm Pharmaceuticals and Kura Oncology also exhibit negative ROICs of -96.06% and -25.21%, respectively, with WACCs of 15.48% and 8.03%. Their ROIC to WACC ratios of -6.20 and -3.14 further highlight the difficulties these companies face in generating returns above their cost of capital. These figures suggest that these companies, like AnaptysBio, are not currently using their capital effectively.
CytomX Therapeutics, however, stands out with a positive ROIC of 62.20% and a ROIC to WACC ratio of 8.24. This indicates that CytomX is effectively generating returns on its invested capital that far exceed its cost of capital. Among the peer group, CytomX demonstrates the most efficient use of capital, making it an attractive option for investors seeking growth potential in the biotechnology sector.
